It's a step in the right direction, but I'm not enthusiastic about it for several reasons:
1) I understand there is a significant stratum in society that is too poor to afford healthcare, but not poor enough to get medicaid. A tax deduction won't help them much, because they barely pay any taxes in the first place. I prefer a lump sum tax credit.
2) A tax deduction does nothing for those who can't get insurance because they have pre-existing conditions. (Think of Bear's epileptic cub.)
So, as I said -- a step in the right direction, but nothing to be enthusiastic about.
Free Duck wrote:The only thing I disagree with is the proposal to levy additional taxes on those who have high dollar coverage. Why punish someone for having good insurance?
Because there is a school of thought among conservative economists that says the major problem with exploding health care costs is the free-rider problem: people consume too much of it because others pay most of your treatment. I'm not sure to which extent the evidence bears out this thinking, and even if I accept it I don't see how it applies to programs where you pay more to get more. But I think the extra taxes originate from this theory, filtered through several layers of think tank idology and back office politics.